Correlation Between T3 Entertainment and HANA Micron
Can any of the company-specific risk be diversified away by investing in both T3 Entertainment and HANA Micron at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining T3 Entertainment and HANA Micron into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between T3 Entertainment Co and HANA Micron, you can compare the effects of market volatilities on T3 Entertainment and HANA Micron and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in T3 Entertainment with a short position of HANA Micron. Check out your portfolio center. Please also check ongoing floating volatility patterns of T3 Entertainment and HANA Micron.
Diversification Opportunities for T3 Entertainment and HANA Micron
-0.66 | Correlation Coefficient |
Excellent diversification
The 3 months correlation between 204610 and HANA is -0.66. Overlapping area represents the amount of risk that can be diversified away by holding T3 Entertainment Co and HANA Micron in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on HANA Micron and T3 Entertainment is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on T3 Entertainment Co are associated (or correlated) with HANA Micron. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of HANA Micron has no effect on the direction of T3 Entertainment i.e., T3 Entertainment and HANA Micron go up and down completely randomly.
Pair Corralation between T3 Entertainment and HANA Micron
Assuming the 90 days trading horizon T3 Entertainment Co is expected to generate 0.95 times more return on investment than HANA Micron. However, T3 Entertainment Co is 1.06 times less risky than HANA Micron. It trades about 0.33 of its potential returns per unit of risk. HANA Micron is currently generating about -0.01 per unit of risk. If you would invest 127,700 in T3 Entertainment Co on September 14, 2024 and sell it today you would earn a total of 29,300 from holding T3 Entertainment Co or generate 22.94% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Weak |
| Accuracy | 100.0% |
| Values | Daily Returns |
T3 Entertainment Co vs. HANA Micron
Performance |
| Timeline |
| T3 Entertainment |
| HANA Micron |
T3 Entertainment and HANA Micron Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with T3 Entertainment and HANA Micron
The main advantage of trading using opposite T3 Entertainment and HANA Micron positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if T3 Entertainment position performs unexpectedly, HANA Micron can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in HANA Micron will offset losses from the drop in HANA Micron's long position.| T3 Entertainment vs. Samsung Electronics Co | T3 Entertainment vs. Samsung Electronics Co | T3 Entertainment vs. LG Energy Solution | T3 Entertainment vs. SK Hynix |
| HANA Micron vs. TJ media Co | HANA Micron vs. DB Insurance Co | HANA Micron vs. Genie Music | HANA Micron vs. Samsung Life Insurance |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
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